Buying vs. Renting your Home

Buying vs Renting

The decision to buy a home is probably the biggest financial decision you will make in your lifetime. At Lakeland Credit Union, we feel that finalizing the details of a mortgage is really the last step in a complex decision process. The differences between renting and owning are enormous, but the question of which is better for you is a highly personal one.

Financial Considerations

In general, you should expect your monthly expenditures for your mortgage and related costs to be somewhat higher than rental payments. Of course, the exact percentage will vary depending on other debts you may be carrying. And keep in mind that aside from your mortgage payments, your monthly income must still allow you to maintain a comfortable standard of living. When taking on a mortgage, will you still be able to afford food and clothing, gas, car insurance and repairs? How about vacations or other leisure expenses? If you anticipate a monthly debt load approaching 40% of your gross income, including your mortgage, you are probably not financially prepared to take on a mortgage.

Personal Considerations

At Lakeland Credit Union we know that buying a home isn't just about money. There are many personal factors to weigh before making the decision that's right for you.

Are you looking for a stronger sense of place within your community? Are you willing and able to maintain and repair your own property and home? Do you want the stability of home ownership as the foundation for starting a family? If so, then home ownership may be a natural next step.

On the other hand, maybe you prefer the freedom to move to a different neighbourhood or even a different city. Or maybe you're anticipating a promotion at work or planning a leap into an entirely new field or career. In cases such as these, renting is probably your best bet.

In the end, Lakeland Credit Union is here to provide you with the options you need should you decide to buy your own home. But just as important to us is that you know you'll be content here. After all, Lakeland Credit Union is a member of your community too, and we want all our neighbours to be happy.